Outsourcing to offshoring

Even a child nowadays knows that outsourcing is done to save money, which allows the central staff to concentrate on core areas of work. But how much is actually saved? Some say that it between 30 – 40%, while others say it is somewhere between 10-25%. But a Research conducted by KPMG on outsourcing deals revealed that it is hard to quantify the savings. Now outsourcing is giving way to offshoring, which means setting up their offices in outside locations to get their work done. India which is a hot destination for outsourcing, is ditto for offshoring too.
Just to give you a picture of the current scenario. So far 12 per cent of IT and 3 per cent of non-IT companies in the US have outsourced or shifted work; 22 per cent of this was by the big companies. Many more are heading the India way. Companies are thinking of increasing outsourcing apart besides setting up their own offices. Because of India’s advantage in areas such as cost, environment and quality of people, it is at the top of the table at the moment. India is rated high for cost and the quality of personnel it boasts, but drops a wee bit in environment. India will be the first choice for some time, because according to a study, 9 out of 10 chief executives preferred India to other countries.
So be it outsourcing or offshoring, opportunities galore for India.